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The following is the statement of financial position of the Generation Bhd as at 30...

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Accounting

The following is the statement of financial position of the Generation Bhd as at 30 June 2019:

Generation Bhd

Statement of Financial Position as at 30 June 2019

RM

Non-current assets

Land and building

15,000,000

Investment

4,000,000

Current asset

Other current assets

3,013,600

Bank

4,200,000

26,213,600

Issued and paid-up capital

4,000,000 ordinary shares

8,000,000

Reserves

Retained earnings

6,953,600

17,453,600

Non-current liabilities

7 million 5% Redeemable Preference Shares

10,500,000

10% debentures

760,000

26,213,600

The directors decided on the following matters:

  1. The company decided to redeem half of 5% Redeemable Preference Shares.
  2. In order to finance the redemption, the company decided to issue 2,000,000 unit of ordinary shares at RM2.

3. To dispose half (1/2) of the investments at a profit of RM200,000.

Required: Journalize the above transactions. (7 marks)

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